• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

Underground Cellar

September 9, 2021

I Tried Underground Cellar’s Gamification Tech for Online Wine Shopping

Not all of us are lucky enough to have a wine cellar within our homes to store bottles at the perfect temperature, humidity, and darkness. Most of us don’t casually reach for a $70 bottle of wine. A Napa Valley-based company called Underground Cellar is looking to change that. Through its e-commerce platform, users can virtually store up to 500 bottles and receive free upgrades to more expensive bottles of wine.

The Shark Tank-backed platform has existed for about five years, and in June 2021, the company raised $12.5 million in funding. Underground Cellar recently reached out to me and offered site credit to test out its platform. As someone that typically only buys a $10 bottle of Cabernet Sauvignon from Trader Joe’s, I was excited to give it a try.

Example of how the upgrades work

Every day, the Underground Cellar’s platform features different wineries, regions, or varietals. A bottle price is listed for each select deal, and the minimum purchase number is three bottles per order. However, most of them are upgraded to more expensive bottles after you purchase wine, but the user still pays the lowest price listed. On top of this, every deal includes a “top upgrade,” which means you have the chance of receiving a rare or expensive bottle of wine.

My CloudCellar and the wines I received

I ordered three bottles of Cabernet Sauvignon, and each bottle cost $35. I did not know exactly what brands or vintages I would be receiving until after I placed the order. I actually ended up with bottles of wine valued at $45, $60, and $85. Two of my bottles were ready to ship right away, and the one took about a week to become available. The bottles are stored in my “CloudCellar,” which means that Underground Cellar is storing them in its Napa Valley facilities until I am ready to ship the wine to my house.

Other platforms that sell and recommend wine exist, like Vivino and Winc. However, Underground Cellar’s gamification feature sets it apart from the other sites. Buying wine on the platform feels like a safer, tannin-infused version of gambling. As the user, you know you will at least get a bottle worth what you paid for. The chance of getting upgraded to something like a 1975 Dom Pérignon Oenothèque (worth $2,000) is what keeps the user hooked and coming back for more deals.

I liked the platform because it forced me to try completely new wines that I normally would not have reached for in-stores. As a 25-year-old millennial on a tight budget, I would never spend $85 on a bottle of wine, but I was given this opportunity with the upgrade technology. I definitely don’t have a wine cellar, and I liked knowing that my bottles of wine were being stored in perfect conditions.

On the flip side, some people might not like that they cannot choose exactly what wine they want. On top of this, most bottles on the platform start at around $30-$35 (except for the occasional $20 blowout deals). Certain people, like myself, typically stick to the $5-$20 range when it comes to buying wine. Shipping is a bit pricey, costing $21 for ground shipping for three bottles of wine. To receive free shipping, 12 bottles must be shipped together.

Overall, I found Underground Cellar to be a neat platform I would recommend to my wine-loving friends. Since its recent funding round, the company has been growing its team, improving its gamification tech, and making more connections with wineries.

June 15, 2021

Underground Cellar Raises $12.5M for its Gamified “Upgrade” Wine Service

Underground Cellar, which aims to entice wine buyers with the promise of random upgraded bottles of wine, announced today that it has raised a $12.5 million Series A round of funding. The round was led by Accomplice, with participation from Golden Ventures and Bling Capital.

There are plenty of players in the online wine space such as Vivino and Winc that recommend and sell wine, but Underground Cellar’s hook is its gamification of the wine-buying process. Rather than discounting wines, it offers customers the chance for free upgrades. For example, someone might purchase three $20 bottles of wine through Underground Cellars. However, after purchase, Underground Cellar upgrades one of those bottles to a randomly selected, more expensive wine. So the customer could receive a bottle worth $50, $200 or much more.

In addition to its upgrade program, Underground Cellar also offers customers the ability to store up to 500 bottles of wine in the company’s temperature- and humidity-controlled facility in Napa Valley. This “Cloud Cellar” holds the purchased wine, and when customers are ready, they select bottles from their collection and Underground Cellar ships them off for delivery.

Underground Cellar’s funding could be coming at just the right time. Wine Spectator wrote back in December of 2020 that the U.S. wine market grew just 0.1 percent last year, with 328.9 million cases sold. However, Rob McMillan, executive vice president of Silicon Valley Bank’s wine division, told Wine-Searcher in April of this year to expect a wine boom over the next year as the pandemic recedes. Wine-heavy events like weddings, which were put on hold last year, will be back and there will be pent-up demand to celebrate.

With its new funding, Underground Cellar says that it will enhance its gamified platform, deepen relationships with wineries and triple the size of its team by the end of the year.


Primary Sidebar

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
 

Loading Comments...